The global cryptocurrency market has surpassed $3 trillion, driven by renewed optimism following Donald Trump’s election as U.S. President. Many investors believe that less stringent regulatory measures in the U.S. could spark a new boom in the crypto sector, fostering growth and innovation in digital currencies. This sense of hope has contributed to the market’s rapid expansion.
According to CoinGecko’s calculations, the overall market value of cryptocurrencies reached $3.2 trillion in Asia on November 14th, exceeding the all-time record set in 2021 during the pandemic-era stimulus that fuelled speculative investments.
Market leader Bitcoin made an incredible recovery, reaching a record $93,480, after the market had remained flat. After the election on November 5th, Bitcoin’s price increased 30% to $90,000, and ether’s price increased 33% to $3,220. Elon Musk, a Trump supporter, drove a 140% increase in the value of Dogecoin.
Crypto exchange-traded funds have seen massive inflows of capital during the boom, which may be an indication of institutional interest. But even though people are excited again, some people in the crypto world are still being cautious. For example, the average price of a non-fungible token (NFT) has increased from roughly $2,000 to approximately $2,700, which is a very small increase.
Even though the cryptocurrency market is expanding, it is still little compared to more conventional assets. Consider that the market cap of the S&P 500 is more than $50 trillion, while the value of the world’s gold reserves is close to $19 trillion. However, others on the inside of the sector think that the fresh focus could propel even more progress.
